IR35 review

[proggy]

I never get mine checked now since :

In September 2011 a Freedom of Information Request revealed that the number of cases reviewed had fallen from 158 (year ending April 2007) to 12 in year ending April 2010 and 23 in year ending April 2011. The same document also gives the "tax yield received for the requested years" as having fallen from £1,906,619 to £219,180. No details are given for the costs of the investigations or the costs of collecting the tax. It is not clear whether this figure relates to the revenue raised from investigations, or the total revenue from IR35. No figures were given for the cost of administrating the tax, or the cost of the investigations

So they went from 158 cases to 23 in 2011, it's probably all but been abandoned by now. The risk is so negligible now it's pointless worrying never mind spending money on it.

[Zero Liability]

I never get mine checked now since :



So they went from 158 cases to 23 in 2011, it's probably all but been abandoned by now. The risk is so negligible now it's pointless worrying never mind spending money on it.

I was under the impression they had been ramping it up recently, not to mention given the sort of contract I am on there is the risk they could take the view this type of contract's working practices could not meet their (arbitrary) criteria and target reviews in that area. It could also be that yours is a more clear-cut scenario. Otherwise I'd be inclined to agree, that number is minuscule.

[northernladuk]

For now.........

Be interesting to know the ratio businesses to tax inspections. Can't think that is very high either. Throw the book away and claim everything?

[Zero Liability]

Does anyone here have a link for the 2014 change to SA that will require you to stipulate and substantiate your IR35 in/out status?

[BigRed]

nice little earner on IR35 insurance then. Another misselling scandal?

[Zero Liability]

Abolish it and a lot of these firms will have to find new business.

[SueEllen]

nice little earner on IR35 insurance then. Another misselling scandal?

Since people actually get investigated and the insurer pays out there is no missselling.

Also for the level of legal fees covered insurance is low indicating the risk of investigation isn't that high for those with insurance. Looking at other threads and from someone I've met it seems that HMRC doesn't tend to like to investigate people who have proper legal defence.

[LisaContractorUmbrella]

I think you'll find they've ramped up investigations again since Margaret Hodge got involved HMRC crackdown on freelance tax dodge used by BBC and civil servants - Telegraph

[Zero Liability]

There isn't a spot in hell too hot for hypocrites like her.

[Qdos Contractor]

Just on the enquiry numbers; another FOI request earlier this year revealed that they had jumped to 193 in the first half of the last tax year (y/e 2013). As far as I'm aware we haven't had a figure for the complete tax year, but it's obviously going to be a significant increase from the 23 in y/e 2011 and 59 in y/e 2012.

So it's far from abandoned. HMRC have just created a fourth specialist team solely tasked with IR35, so I'd expect the numbers to continue to rise.

Interestingly, the vast majority of new IR35 enquiries we've had from our insured clients are into those working in the public sector.